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Don't understand this accounting homework: Please recreate CUSTOMER SERVICE COSTS for each companies and answer the question below, thank you. Johnson Beverage sell to
Don't understand this accounting homework: Please recreate "CUSTOMER SERVICE COSTS" for each companies and answer the question below, thank you.
Johnson Beverage sell to Retail store customers-about 20 customers Exhibit 1 Customer Profitabillity) Total JBI s rates Odd Lots Midwellon $454,5009,063,980 $12,000,000 10,480,000 $1,192,000 $1,168,000 1,048,000 104,800 16,720 12,152 4,568 393,000 61,500 45,450 16,050 7,886,200 1,177,78o 906,398 271,382 Cost of Goods Sold Gross Profit Customer Service Costs-116,800 119.200 320,000 retme Customer Profit 2.7% 3.0% Profit % 2.1% List price is $15.20 per case Cost is $13.10 per case Discounts vary by customer (Exhibit 2 Customer information) Total JBI Odd Lots $ 15.06 15,00 800,000 $ 14.60 s 14.90 $15.19 $ 15.15 Price per Case Number of Cases Number of Orders Number of Deliveries Miles per Delivery Expedited Deliveries Sales Visits 602,000 3,540 2,020 16 110 130 2,500 250 25 12 Customer Saver Superstore is not happy- they think they are paying too much Custorner Service Cost Detail Cost In addition to COGS Johnson has Customer Service costs of $1.2 million per year - like overhead See Table 1 currently allocated based on % of revenue $ 672,000 produci Handi Taking Orders from Customers Delivering the Product Expediting Deliveries Sales visits Total 100,000 140,000 198,000 90,000 $ 1,200,000 They Run a report of Profitability by Customer See Exhibit 1 Can you help them using Activity Based costing
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